IDX Opens at 5,072.90 Points on Thursday Morning
30 October 2014 19:04 WIB
TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) opened at 5,072.90 points, slightly down by 1,15 points or 0,02 percent at the start of Thursday's trading session.
Meanwhile, the Top 45 (LQ45) Index inched slightly lower by 0.28 points or 0.03 percent to 863.18 points.
"The IDX is slightly weaker amid the decision by the Federal Reserve Bank of America to end its Quantitative Easing policy. Market responses across the region vary, Japan's Nikkei moved up while the Hong Kong's Hang Seng slid as a result," said an analyst for Samuel Sekuritas, Tiesha Narandha Putri.
Domestically, the government has finally confirmed that it is committed to raising the price of subsidized fuels sometime before January 2015, said Tiesha.
The Head of Research at Valbury Asia Securities, Alfiansyah, said the Finance Minister Bambang Brodjonegoro explained that the reason why Indonesia is weighing the possibility of raising the prices of subsidized fuel is to free up some fiscal space in the budget.
"That said, the government has yet to decide on the extent of the price hike, as well as the exact time when the hike will take effect," said Alfiansyah.
According to him, Indonesia's economic growth has slumped to a position last seen in 2009 and as such, Indonesia is faced with the risk of an increasing budgetary deficit, which is currently nearing its peak on record. The combination of these factors may drive out capital away from Indonesia's share market.
"Because the market is still waiting for the government to commit to a raise in subsidized fuel prices, and amid the slowing growth of the United States (US) economy, it is hoped that publicly listed company in the IDX could post favourable performance figures for the third quarter of 2014, which will provide a boost for the IDX," continued Alfiansyah.
Meanwhile across Asia, the Hang Seng Index slid by 72.85 points or 0.31 percent to 23,747.02 points, while the Nikkei went up by 91.57 points or 0.59 percent to 15,645.48 points. Similarly, the Straits Times Index also went up by 2.08 points or 0.06 percent to 3,226.10 points.
